The Need and Rationale for Competition Law and Policy in Cambodia Training Workshop on Competition Policy and Law Implementation for Cambodia Phnom Penh 10 March 2006. Deunden Nikomborirak Thailand Development Research Institute. Presentation Outline.
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The Need and Rationale for Competition Law and Policy in CambodiaTraining Workshop on Competition Policy and Law Implementation for CambodiaPhnom Penh10 March 2006
Thailand Development Research Institute
A Firm’s Competitiveness depends on the level of Competition in the market.
But competition in the market may be limitedi.e. “market failure”. Hence, this requires economics of regulation and competition.
“Whoever claims that economic competition represents 'survival of the fittest' in the sense of the law of the jungle, provides the clearest possible evidence of his lack of knowledge of economics”
Policy to promote free and fair competition in the market.
Competition in a Market Cambodia
Locally made products
Trade & investment policy
High risk of monopolization and collusion because
4.1 Limited size of domestic market implies potentially concentrated markets.
4.2 Lack of transport infrastructure implies that markets are geographically “segmented”
4.3 proliferation of “exclusive” private concessions in order to mobilize private investment
4.4 A large agricultural sector where farmers will be exposed to competition from vertically integrated food MNCs.
4.5 Foreign acquisition of local businesses or business consolidation (mergers) may lead to monopolies/duopolies
High risk of “unfair trade practice”, resulting from
4.4 Proliferation of SOEs with regulatory and monopoly power
4.5 Unequal bargaining power between buyer and seller – i.e., retail business or franchise business